WHEATON, Md.-A recent report from Herschel Shosteck Associates Ltd. examines the reasons
why Motorola Inc.’s Cellular Subscriber Sector lost market share to Nokia Corp., which today is the leader in
worldwide handset market share.
“The answer lies in Nokia’s long-term strategy and Motorola’s
overconfidence,” said the firm in this latest report.
Herschel Shosteck Associates said it believes Nokia’s
success stems from the company’s recognition that given the single Global System for Mobile communications
standard dictated by Europe, the European wireless market would equal or surpass in size that of the United States. For
this reason, Nokia focused the majority of its resources into developing GSM handsets. The firm said Nokia also
realized that different market segments preferred different product designs, and the company was able to take an early
lead in GSM terminal sales by emphasizing multiple products designs.
